FinTech: Credit Sesame Acquires Canadian Neo Bank STACK After Resounding Success of Sesame Cash
Sesame Cash, a new kind of zero fees digital banking service launched by Credit Sesame, was a runaway success.
In late 2019, Credit Sesame and Canadian challenger bank STACK joined hands to offer Sesame Cash, a checking account service that put users in control of their banking and credit in one place. Since mid-May, when Sesame Cash became available to the general public, more than 200,000 customers signed up in less than a month. Over 62% of Credit Sesame’s 15 million members are interested in the service. The company announced Tuesday its acquisition of STACK. (Finovate)
Credit Sesame is combining its strengths in data science and AI-driven analytics to help Sesame Cash users manage their cash and enhance their credit. Add STACK’s smart banking to the mix, and Sesame Cash becomes a whole new kind of personal finance product.
The company did not disclose the terms for the acquisition of STACK.
However, all employees of STACK have been integrated into Credit Sesame. Those in Canada will continue to work out of the existing STACK offices in Toronto.
STACK is the first acquisition by Sesame Credit.
Cash and credit – at your beck and call
“How much cash you have, and how and when you use your cash, have a big impact on your credit,” said Adrian Nazari, CEO and founder, Credit Sesame. “Adding cash management to our credit platform was a natural next step to better help consumers manage their overall financial health, and it creates a unique benefit for our consumers and financial partners.”
According to the company, more than half of U.S. consumers live from paycheck to paycheck. Credit Sesame would help them manage their finances better and also match them with various products from its large base of financial partners.
Sesame Cash features
- No-fee contactless Mastercard debit card
- Free daily credit score refresh
- Cash reward for improving credit
- Early payday
- Real-time transaction notifications
- Mastercard Zero Liability protection
- Direct deposit
- Ability to freeze or unfreeze the debit card in-app
- Virtual card integration with most major mobile wallets
Investors include Menlo Ventures, Inventus Capital, Globespan Capital, IA Capital Groups, NortonLifeLock, Capital One Ventures, Stanford University, and ATW Partners, among others. According to Business Insider, Credit Sesame has raised over $120 million since its founding in 2010.
The company has been profitable since 2016.
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